Good morning tutors,

I have attached an excel file and I need assistance to determine if the information presented is correct. I also need a little help with the break even analysis and the ratios.

I look forward to your responses as I need this information for this ASAP,

Thanks

VAST Professional Services Projected Income statement For The Years Ending December 31 Revenue: Service Revenue Total Revenue Expenses: Advertising Bad Debts Bank Charges Charitable Contributions Dues and Subscriptions Insurance Interest Expense Maintenance Office Expenses Operating Supplies Payroll Taxes Permits and Licenses Postage Professional Fees Rent Telephone Travel Utilities Vehicle Lease Expenses Wages Total Expenses Earning Before Income Tax Tax Expenses Net Income $ $ 2019 700,000 700,000 $ $ 2020 714,000 714,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10,000 2,000 1,000 1,200 24,000 5,000 7,000 10,000 6,100 10,000 1,200 2,250 60,000 3,000 8,000 6,500 36,000 100,000 293,250 406,750 (122,025) 284,725 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 6,000 4,000 2,000 1,000 900 18,000 19,000 4,000 4,000 5,500 7,625 1,000 2,250 54,000 2,400 10,000 6,000 27,000 125,000 299,675 414,325 (124,298) 290,028 VAST Professional Services Projected Balance Sheet For The Years Ending December 31 ASSETS Current Assets Cash Accounts Receivable Inventory Office Supplies Prepaid Insurance Total Current Assets 2019 2020 ### $ 385,000 $ 20,000 $ 55,900 $ 28,000 $ 20,000 $ 30,025 $ 19,000 $ 19,000 ### $517,925 Non Current Assets Furniture Less Depreciation Book Value $ 60,000 $ 12,000 $ 48,000 $ 48,000 $ 12,000 $ 36,000 Equipment Less Depreciation Book Value Total Non Current Assets Total Assets $ 65,000 $ 13,000 $ 52,000 ### ### $ 52,000 $ 13,000 $ 39,000 $ 75,000 $565,925 Current Liabilities Allowance for Doubtful Accounts $ 6,400 $ 15,000 Accounts Payable $ 12,000 $ 20,000 Total Current Liabilities ### $ 35,000 Long-Term Liabilities Notes Payable Interest Payable Total Long Term Liabilities Total Liabilities $ 27,000 $ 19,000 $ 46,000 ### $ $ $ $ 27,000 19,000 46,000 81,000 Owners' Equity Partners Contribution Retained Earnings Total Owners Equity Total Liabilities and Owners Equi $ ### ### ### $ 200,000 $ 284,724 $ 484,724 $565,724 VAST Professional Services Projected Cash Flow Statement For The Years Ending December 31 Cash Flows from Operating Activities Net Income Adjustments to rconcile Net Income to Net Cash provided by operating Activities Accumulated Depreciation Cash Accounts Receivable Supplies Advertising Expense Maintenance Expense Miscellaneous Expenses Total Operating Expenses Cash Provided by Operating Activities $ 284,725 $ $ $ $ $ $ $ $ $ 25,000 105,000 20,000 20,000 10,000 5,000 14,450 199,450 484,175 Cash Flows from Investing Activities Computer and Furniture Cash Used in Investing Activities $ $ 125,000 125,000 Cash Flows from Financing Activities Notes Payable Interest Payable Cash Used in Financing Activities Net Cash Flows $ 27,000 $ 19,000 $ 46,000 $ 313,175 revenue - variable costs = contribution margin VAST Professional Services Break Even Analysis For The Years Ending December 31 Service Revenue Total Revenue Collected $ $ 700,000 700,000 Variable Costs Wages and Salaries Expense Total Variable Costs Contribution Margin $ $ $ 100,000 100,000 600,000 $ $ $ 10,000 6,500 5,000 $ $ 54,000 24,000 $ 99,500 Fixed Costs Advertising Expenses Utilities Expense Maintenance Expense Rent Insurance Expense Total Fixed Costs Profit Margin Taxes 30% Based on the analyis it could be determined that Professional Staffing's goal in our first year of operation is to Break even. To accomplish this goal a total of $______________ worth of revenue must be realized and the final figure would be calculated using the contribution margin ratio. $ 500,500 $ 1,251,250 0.085714 Ratios Gross Profit Margin Gross Profit Margin/Net Sales (Revenue) * 100 Return on Assets 108% Net Income / Total Assets 284725 / 264000 Return on Investment Net Income / Average Owner's Equity 284725 / 200000 Break Even poin 142%